a) What is the excess of gross margin over customer costs for each category of customer?
b) Write a short opinion after you evaluate customer profitability

Solution Preview

In my opinion, the gross margin per customer is a bit misleading. It looks like the gold customers are very profitable. However, gold customers require a lot more attention from customer representatives and involve much more promotion costs than silver ...

Solution Summary

Your response includes a report in Excel (click on cells to see computations) and a 128 word discussion about the results in the report.